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NY mayor plans to address social inequity

Michael VincentUpdated
Thu 2 Jan 2014, 8:45 AM AEDT

President Barack Obama has called economic inequality the greatest social challenge of our time. Many Democrats are now looking to the newly sworn in mayor of New York to provide an example of how progressive policies can work to address massive social inequity. Bill de Blasio was sworn in today by Bill Clinton and says he will not wait to introduce changes like a tax on the rich to pay for after school care and universal preschool.

Transcript

TONY EASTLEY: US president Barack Obama has called economic inequality "the greatest social challenge" and many Democrats are now looking to the newly sworn-in mayor of New York to provide an example of how progressive policies can work to address social inequity.

Mayor de Blasio wants to tax the rich to pay for new services.

North America correspondent Michael Vincent reports.

MICHAEL VINCENT: A new year, a new mayor, and New York is in for a very big change.

Bill de Blasio:

BILL DE BLASIO: We will ask the very wealthy to pay a little more in taxes so that we can offer full day universal pre-K for every child in this city! (Cheers and applause) and after school programs for every middle school child!

MICHAEL VINCENT: With national networks taking his speech live, the new mayor of America's biggest city went into detail.

BILL DE BLASIO: When we say "a little more", we can rightly emphasise the "little". Those earning between $500,000 and $1 million a year, for instance, would see their taxes increase by an average of $973 a year. That's less than three bucks a day - about the cost of a small soy latte at your local Starbucks. Think about it.

MICHAEL VINCENT: Democrats are thinking very carefully and watching intently how Bill de Blasio's policies will play out. This November there are mid-term elections for the Congress.

For some he is a beacon of progressive politics, by reforming stop-and-frisk laws and increasing housing for the poor. For others, his attacks on the wealthy and trickle-down economics make him a target - something he acknowledges.

BILL DE BLASIO: We do not ask more of the wealthy to punish success. We do it to create more success stories. And we do it to honour a basic truth: that a strong economy is dependent on a thriving school system. We do it to give every kid a chance to get their education off on the right foot, which study after study has shown leads to greater economic success.

MICHAEL VINCENT: In his speech, Bill de Blasio mentioned the time he spent on Hillary Clinton's first campaign when she ran for the US Senate. He turned and thanked her, as well as the man who gave him a job in his administration, Bill Clinton, who also spoke today. The former president underlined the need for social change.

BILL CLINTON: This inequality problem bedevils the entire country, and I can tell you from my work, much of the world. But it is not just a moral outrage - it is a horrible constraint on economic growth and on giving people the security we need.

MICHAEL VINCENT: It's that argument of being able to increase economic growth by helping the lowest paid that's already being used by Democrats at the national level to call for a higher minimum wage.